Sweden · Delayed Price · Currency is SEK Coor Service Management Holding AB Earnings Call Transcripts
Fiscal Year 2026
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Q2 delivered stable results with margin improvements and strong cash conversion, despite revenue declines in Denmark and Norway due to contract losses and variable volumes. Sweden and Finland showed positive organic growth, and strategy execution is progressing well.
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Q1 saw improved EBITDA margin to 5.5% and strong cash conversion, with Sweden, Norway, and Finland delivering solid organic growth, while Denmark faced continued contract losses. Leverage decreased to 2.3x EBITDA, and a new SEK 750 million bond was issued, enhancing financial flexibility.
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The company is targeting organic growth of 4–5% and margin expansion to 5.5% EBITDA, leveraging its IFM leadership to expand in cleaning and property through operational efficiency, M&A, and a cultural shift toward sales and retention. AI and digitalization are central to process improvements and scalability.
Fiscal Year 2025
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Q4 2025 delivered strong cash conversion, improved margins, and high market activity, with notable contract wins and cost reductions. Dividend and share buyback plans were announced, while margin and growth outlooks remain positive but cautious amid inflation and contract transitions.
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Q3 delivered stable results with improved cash conversion, strong growth in Norway, and margin gains. Denmark faces operational and contract challenges, while Sweden shows increased stability. Ambition for 5.5% margin by 2026 remains unchanged.
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Q2 saw 3% organic growth, margin improvement, and strong cash conversion, with Norway driving results through high variable volumes. Organizational restructuring is complete, cost savings are materializing, and the contract portfolio remains stable, though Denmark faces ongoing challenges.
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Q1 saw improved profitability and cash flow, with EBITA margin rising to 4.7% and cash conversion at 81%. The new organization is expected to deliver SEK 120 million in annual savings, while the focus for the next year remains on margin improvement amid stable market demand.
Fiscal Year 2024
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Stable market conditions and strong contract renewals led to an 88% retention rate in 2024. Q4 saw negative organic growth and lower margins, but a simplified organization and cost-saving measures are expected to restore profitability and reduce leverage in 2025.
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Key contracts were extended and new wins secured, but net sales fell 2% year-over-year with flat organic growth. Staff reductions and restructuring costs were implemented in Denmark and Sweden due to lower variable volumes, while the action program for margin improvement and cost savings continues.
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Q2 sales and operating profit matched last year, with strong contract retention (94%) and new wins in small and mid-size segments. Margins remain stable, and growth opportunities persist in the Nordics, supported by a solid contract pipeline and limited retention risk for 2024.